DURHAM, N.C. - Precision BioSciences, Inc. (NASDAQ: NASDAQ:DTIL), a gene editing company, reported today that it has finalized a private stock sale exclusively to its senior leadership team. The transaction includes the sale of 25,000 shares at $12.00 each, totaling $300,000. This price reflects a 13.5% premium over the stock's closing price prior to the agreement. The completion of the sale is scheduled for today, subject to standard closing conditions.
The company disclosed that the funds raised from this private placement will be allocated to ongoing research and development efforts. Precision BioSciences is known for its ARCUS® genome editing platform, which is distinct in its approach to gene editing with potential for precise and therapeutic genetic alterations. The company's pipeline includes treatments aimed at providing cures for a variety of genetic and infectious diseases where current treatments are inadequate.
It is important to note that the offer and sale of the securities are not registered under the Securities Act of 1933, as amended, or any other securities laws. The sale is being conducted under an exemption from the registration requirements, and there will be no public solicitation or sale of these securities in any jurisdiction where such activities would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.
This news comes amid a series of forward-looking statements from the company, which include expectations about the private placement's timing and size, as well as the anticipated gross proceeds. Investors are cautioned that these statements involve risks and uncertainties that could cause actual results to differ materially from the projections.
Precision BioSciences has emphasized that the forward-looking statements are valid only as of today and that no obligation exists to update or revise any of these statements. The company acknowledges the substantial risks and uncertainties inherent in its business, which are detailed in its regulatory filings with the SEC.
This report is based on a press release statement from Precision BioSciences, Inc.
InvestingPro Insights
As Precision BioSciences, Inc. (NASDAQ: DTIL) moves forward with its private stock sale to senior leadership, a closer look at the company's financial metrics and analyst expectations reveals a nuanced picture. According to InvestingPro, the company's market capitalization currently stands at $73.1 million.
Despite the optimism surrounding the ARCUS® genome editing platform, InvestingPro data indicates a significant revenue growth rate of 94.15% in the last twelve months as of Q4 2023, though this was accompanied by a quarterly revenue decline of 33.59% in Q4 2023.
InvestingPro Tips suggest that while Precision BioSciences holds more cash than debt on its balance sheet, analysts are wary of the company's cash burn rate and anticipate a sales decline in the current year.
This is compounded by expectations that net income is likely to drop this year, and analysts do not forecast the company to be profitable within this timeframe. These concerns are reflected in the stock's recent performance, with a one-month price total return showing a decrease of 21.88% as of the latest data.
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Investors should consider these metrics and analyst expectations when evaluating the potential impact of the private stock sale on Precision BioSciences' financial health and stock performance. The company's next earnings date is set for May 8, 2024, which will provide further clarity on its financial trajectory.
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